Amending Regulation (EU) 2017/2402 on securitisation and a specific framework for simple, transparent and standardised securitisation

It affects banks, insurers, institutional investors, securitisation issuers, securitisation vehicles, servicers, SMEs, businesses and households seeking credit.

• Defines public and private securitisations and creates lighter reporting for private deals.
• Removes some investor verification duties for EU-supervised sell-side parties and low-risk public-backed transactions.
• Treats pools with at least 70% SME exposures as homogeneous for STS securitisation.
• Strengthens supervisory coordination through an EBA-led securitisation sub-committee and lead supervisors for cross-border deals.

Takes effect

The Regulation enters into force on the twentieth day following publication in the Official Journal of the European Union.

Transitional law

Private securitisations must use the new dedicated reporting template only from the date set by the new technical standards.

• Regulation (EU) 2017/2402 (32017R2402)
  • art. 1: replaces paragraph 2 on scope, adding servicers
  • art. 2: adds definitions of public securitisation and private securitisation
  • art. 5: amends due diligence obligations, deletes points, inserts exemptions and replaces delegation rule
  • art. 6: adds Union to exemption list and inserts new paragraph 5a
  • art. 7: amends transparency reporting and replaces technical standards mandates
  • art. 10: replaces paragraphs 1 and 2 on securitisation repository registration
  • art. 17: replaces paragraph 1 on repository access and deletes paragraph 2 point (a)
  • art. 20: adds SME-pool homogeneity rule and amends restructured exposures disclosure
  • art. 22: amends environmental disclosure and pre-pricing documentation obligations
  • art. 24: amends restructured exposures disclosure and adds SME-pool homogeneity rule
  • art. 26b: adds permitted removals, SME-pool homogeneity rule and amended restructured exposures disclosure
  • art. 26c: replaces paragraph 5 eighth subparagraph on credit protection after credit events
  • art. 26e: amends credit protection premiums, synthetic excess spread and eligible insurance guarantees
  • art. 28: amends third-party verifier authorisation to include supervision by competent authority
  • art. 29: inserts paragraph 4a and amends paragraph 5 on competent authorities
  • art. 30: inserts paragraph 1a and deletes paragraph 5 on supervision
  • art. 32: adds sanction ground for institutional investor due diligence failures
  • art. 36: deletes paragraph 2, replaces sub-committee rules and inserts lead supervisor provisions
  • art. 44: amends reporting scope and deletes second subparagraph
  • art. 46: replaces review clause